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International Affairs and Global Strategy www.iiste.org
ISSN 2224-574X (Paper) ISSN 2224-8951 (Online)
Vol.23, 2014
10
Transformational leadership and its Applications in the public
service organizations of Ethiopia
Zerihun Duressa (Corresponding Author)
Ethiopian Civil Service University, Ethiopia
E-Mail [email protected]
Melesse Asfaw, Ph.D., PMP
Ethiopian Civil Service University, Ethiopia
E-mail [email protected]
Abstract
In Ethiopia since 1994, to address the leadership problems that had existed in the country for many
years, significant policy changes have been introduced. Under the umbrella of the CSRP, different reform
initiatives like BPR, BSC, and currently building development /reform army in the public service organizations
have been designed to be implemented .Public service leaders at different level advocate transformational agenda
to achieve growth and transformational plan (GTP) goal by implementing these reform tools. However, the
reform programs/ initiatives designed to improve the performance of public service organizations were not
executed at the speed that both government and customers’ desired. Therefore, the objective of this article was to
investigate challenges facing public service leaders to become transformational leaders and assesses the
components of transformational leadership style that leaders of public service organizations are missing in
Ethiopian case. The study was employed focusing on evaluating the efficiency and effectiveness of the reform
programs. The descriptive survey by using mixed method (more of quantitative and some qualitative for
triangulation) research approach was applied. The categories of respondents were leaders, employees and
organizational customers. Oromia region, Benshangul-Gumuz, and Addis Ababa regions were selected. Analysis
of documents, interviews and responses to both open and close-ended questions were made using SPSS software.
The key findings revealed that the changes in Ethiopia enabled public service organizations to create demanding
society for improved services. However, leaders are not at its required level to transform their organizations and
to meet these demands. Lack of setting clear vision and properly communicating are among the major problems.
There is high degree of variation among managers of different levels in the areas of organizational performance.
Finally, the recommended solutions, is to develop transformational leaders that can initiate system based
thinking in order to realize the vision of the country.
Key Words: transformational leadership, organizational performance, public service organization, civil service
reform program,
1. INTRODUCTION
1.1. BACK GROUND
Beukman (2005) has noted that leadership is vital for any success in life of individual as well as teams
in the organizations across different levels of organizations. Recently Transformational leadership style, among
any other style, has rapidly become the style of leadership chosen for application in transforming the
performance of organizations. This is because of transformational leadership, can create a difference and bring a
change or a transformation in many ways (Bass and Riggio, 2006). .
Most organizational theorists also agree that transformational leadership is effective leadership style
and the most important contributors to overall organizational performance success (Palestini 2008, and Barbara
2002). The reason why these all interest developed in transformational leadership is because it better fit for
leading a today’s complex work groups and organizations where all employees and customer seek an
inspirational leader to guide them in the environment of uncertainty (Hayes 2010).
On the other hand, others stressed that the process of transforming leadership is the greatest challenge
of all countries in the world, and the major problems related to organizational performance and good governance
are highly related to lack of effective leadership. This is more critical for developing countries and the same
thing could be true for the countries like Ethiopia. Some writers Mesfin (2006) and Tesfaye (2009) has discussed
the importance of leadership effectiveness in leading changes and the challenges of Ethiopian leaders at different
levels in aligning the organizational strategy to the performance with gaps to be filled.
Ethiopia, urgently engaged to implement three interdependent hierarchies of goals: millennium
development goals, its own long term vision and the country’s GTP. To this end, the country has designed
different strategies to improve the capacity of leaders in the pubilic service organizations. To address the
International Affairs and Global Strategy www.iiste.org
ISSN 2224-574X (Paper) ISSN 2224-8951 (Online)
Vol.23, 2014
11
leadership problems that had existed in the country for many years significant policy changes have been
introduced (Getachew and Rechard 2006). CSRP and Under its umbrella, different reform initiatives like BPR,
BSC, and currently building development /reform army in the public service organizations have been
implemented since 1994.
The Growth and Transformation Plan (GTP) and the attainment of this vision presuppose undertaking
leadership efforts that include the introduction of radical changes in existing operating Systems in the public
sectors. On the other hand, all the increased demand for change from all stakeholders calls for the adoption of a
more focused and strategic approach of transformational leadership. This requires transformational leaders for
the successful implementation of polices and strategies.
Furthermore, transformational leadership has a paramount importance for the implementation of
different developmental strategies the country is currently engaged based on the following assumption; the
agricultural development led industrialization and rural development, urban and industrial development,
democratization and good governance policies of the country can only be achieved only through
transformational leaders at all levels. So it is important to conduct studies to evaluate and determine the status of
leadership affairs with the view of enabling public service leaders, policy makers and all stake holders to have
information on how transformational leadership is vital in order to realize government’s economic, social,
political, and technological visions.
1.2. Problem Statement
In Ethiopia, the reform programs/ initiatives designed to improve the performance of public service
organizations were not executed at the speed that both government and customers’ desired. There is high gap
between how Public service organizations are providing services and how the citizen’s need the services to be. It
seems something is missing in the leadership practices of the organizations and public interest. Institutions
experienced different challenges, and the level of challenges varies from federal level to regions and it is more
acute at public service institutions of regional levels. As stressed by some writers the major problems related to
organizational performance in one way or the other were highly related to lack of transformational leadership
(Mesfin 2006; Paulos 2000). To address the leadership problems that had existed in the country for many years,
significant policy changes have been introduced (Getachew and Rechard 2006) since 1994. Under the umbrella
of the CSRP different reform initiatives like BPR, BSC, and currently building development /reform army in the
public service organizations have been designed to realize the objectives of the refom. Mere designing the
initiatives do not yield the intended results. As indicated by Senge (1994) and Northouse (2010) there should be
a link between the change efforts/initiatives designed and leadership approach in order to bring effectiveness to
the expected level of standards. In addition to Senge(1994), Kaplan and Norton (2010) also particularly
underline the organizations have to continuously develop a new mindset so as to manage and lead the changes.
In Ethiopia, the Government effort to implement a comprehensive Civil Service Reform Program
(CSRP) with the aim of developing a fair, transparent, efficient and ethical civil service to bring institutional
transformations has brought some changes. Many public service organizations have tried to implement the
reform programs and some improvements have registered. .
However, as transformational leadership is a very young theory in Ethiopian context, elsewhere too,
except some attempts of defining it, less attention has been given to implementation of all its components in
leadership practices. Moreover the today’s public service organizations in Ethiopia seek for leadership that is
inspirational, stimulating and considerate of followers’ and customers’. Therefore the effectiveness in reform
implementation or organizational performance depends up on the committement of the leaders.
For this purpose, this study is expected to contribute in identifying the components of transformational
leadership style necessary, and what has been l missing, for implementing the change initiatives.it is also
important in improving the effectiveness of organizational performances a whole and shift its traditional to
modern management systems and practices. The research result, in that it notes the leadership challenges and
limitations; will have high contribution to the Public Service indicating on how the national vision should be
articulated. Furthermore, it indicates the competence of managerial leadership and the need of the partnership
with other players to translate the national vision into tangible outcomes.
1.3. Objectives
1.3.1. Major Objective
The major objective of the study is to assess the relationship between transformational leadership and
organizational performance in Ethiopian public service organizations. In general, this study (article) specifically
attempted to:
� Analyze to what extent the leaders of public service organizations became transformational leaders and
improve the effectiveness of the performance of their organizations.
International Affairs and Global Strategy www.iiste.org
ISSN 2224-574X (Paper) ISSN 2224-8951 (Online)
Vol.23, 2014
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� Assess the components of transformational leadership that leaders of public service organizations are
missing in Ethiopian case.
� Assess the challenges that leaders are facing at different levels in transforming the mission and visions
of their organizations.
1.4. Significance of the Study
The findings of the study are highly significant for public service organizations’ of Ethiopia to
implement the interdependent hierarchies of goals and the growth and transformation plan of the country.
Ethiopia is striving to maintain accelerated and sustainable development and there by achieve its vision of
becoming middle-income country by the early of 2020’s.Therefore, the finding of this study may serve as an
input to materialize the vision of the organizations by assessing the leadership factors that can affect their
transformations.
The attainment of the vision of the country presupposes undertaking transformational leadership efforts
that include the introduction of radical changes in existing operating Systems in the public sectors. For this
purpose, this study will help policy makers and practitioners develop the culture of assessing organizational
change management efforts related to the identifying the leadership style essential for implementing the change
initiatives and to shift to modern management systems and practices.
Moreover, the public will benefit from the study as the findings try to identify the gaps in
implementations of policies and strategies. In other words it will add some value s in the efforts of building good
governance and democracy.
In addition to these, it can be a good benchmark for future researchers who would be interested to
conduct study in the area of public service leadership. Therefore, research result, will have high contribution to
the Public Service indicating on how the national vision should be articulated, by improving the competence of
managerial leadership.
1. Theoretical framework and Literature Review
2.1. Theoretical framework
Components of Transformational Leadership
Idealized + Inspirational + Intellectual + Individual
Influence Motivation Stimulation Consideration
Performance Effectiveness
Figure 1. Conceptual Frame Work Adopted By the Researcher
The components of transformational leadership in the frame work above have been discussed here
under showing the character/behavior of transformational leader in bringing effectiveness in organizational
performance. Based up on the ideas of Bass and Riggio (2006) the study assesses how the leaders are practicing
the four characteristics of transformational leadership in change management efforts as follows;
2.1.1. Idealized Influence: Here the assumption is the leader create the vision and communicate it
broadly, shared it to all members of the organization, and this vision indicates the ultimate outcomes which the
leaders and has to lead by example and serve as a role model and consistently need to behave with the vision set.
2.1.2. Inspirational motivation: when the leader shows the character of excitement and heightens the
expectations of employees and customers in communicating the vision, employees build confidence in the vision
and at the same time self confidence among them.
2.1.3. Intellectual stimulation: in addition to the above characters encouraging creativity, arousing
interest in to new ideas and to the change introduced is very important to bring effectiveness in performance.
Furthermore, it elaborates enabling the members of the organization to think differently about the old problems
in new ways and transformational leader motivate rethinking and questioning of old ways of doing things.
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Vol.23, 2014
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2.1.4. Individual consideration: the assumption behind this is, if the leaders coaches and contributes
his advice with the necessary help, the members can highly improve performance. This requires high listening
ability and expressing encouragement which includes giving regular and positive feedback for strong
performance. The writer of this article considers the above components of transformational leadership while
investigating the relationship among transformational leadership and organizational performance in the public
services of Ethiopia.
2.2. Theoretical framework
2.2.1. What is leadership?
There are many diverse definitions of leadership. For instance, Bennis (1999 ) defined leadership is the
ability to have a vision that is well communicated, build trust among colleagues, and take effective action to
realize one’s own leadership potential. Kotter (1996) pointed that leadership is a set of processes that establishes
organizations in the first place or modifies them according to changing situations. According to him leadership
provides a picture of what the future should look like, aligns people with the organizational vision, and inspires
them to make it happen. Maxwell (1998) concluded that leadership is the ability to influence others. Fiedler
(1967) argues that leadership influences organizational performance and leadership effectiveness is often seen as
crucial to explain and predict organizational performance.
2.2.2. Why leadership is so important in today’s public service organizations? Different scholars (Allio 2001, Niven 2003, Senior 2002, and Barbara 2002) argued that today
management is insufficient in its own to address the demands of the society or cope up with the large scale and
rapid reform agenda. To address the demands of today’s organizations leadership became the most important for
public sector organizations to provide ever-increasing high quality and reliable services. This implies that why
managerial work, in times of change, is increasingly leadership task.
Therefore, Leadership and the study of leadership have drawn great attention from scholars in various
fields in recent years. An underlying assumption is that leaders affect organizational performance and leaders,
through their actions and personal influence, bring about change. According to the research result of Kouzes and
Barry (2002) in today’s fast-changing world, leadership issues are getting increasingly importance in public
service organizations; both at policy and implementation level.
In other words, leadership helps make changes happen by opening channels of communication with the
public and other stakeholders (Niven 2003). Leadership helps to achieve integration across different departments
and different levels of the government utilizing technological advances effectively to improve performance, and
modifying organizational processes to promote newer ways of delivering service. These facts realize that
leadership helps organizations make the critical transition from intention to implementation, potential to
performance, and policy to practice. The next question is which style of leadership style is appropriate to make
this effective.
2.3. Leadership Theories
Numerous leadership theories and styles have been developed by scholars and practitioners who define,
and explain the importance of leadership. Of course, up to this point, there has not been any consensus among
researchers and practitioner alike as what is the best definition for leadership and the most effective leadership
theories and models.
Rather, a combination of styles, depending on the situation the leader finds him or her in, has been
found to be more appropriate (Palestini, 2004). To understand the evolution of leadership theory, it is better to
take historical approach and trace the progress of leadership theory, beginning with the trait perspective of
leadership and moving to the more current.
2.3.1. Trait Theory of leadership
Different literatures indicate that as this theory was Popular in the 1940s and 1950s. According to
Palestine (2004) Trait theory suggests that we can evaluate leadership and propose ways of leading effectively
by considering whether an individual possesses certain personality traits, social traits, and physical
characteristics.
This trait theory attempted to predict leaders based on the personality characteristic and then whether
they were effective. According to this theory, leaders differ from non leaders in their drive, desire to lead,
honesty and integrity, self-confidence, cognitive ability, and knowledge of the business they are in (Avolio &
Bass 1995). Recent research has also tied leadership effectiveness to leader traits.
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ISSN 2224-574X (Paper) ISSN 2224-8951 (Online)
Vol.23, 2014
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2.3.2. Behavioral Theories
The limitations in the ability of traits to predict effective leadership caused researchers during the 1950s
to view a person’s behavior, rather than that individual’s personal traits, as a way of increasing leadership
effectiveness (Hayes 2010, & Palestine 2008). And the behavioral revolution in psychology led to an attempt to
define effective leadership in behavioral terms. A large body of research (including experiments, surveys, and
organizational case studies) revealed that leaders engaged in two broad classes of behavior and labeled as four
styles. Structuring behaviors focus primarily on task accomplishment. Consideration behaviors are concerned
with subordinate motivation and morale (Ricketts 2011).
The four main styles that appear are: Concern for task, here leaders emphasize the achievement of
concrete objectives. They look for high levels of productivity, and ways to organize people and activities in order
to meet those objectives. Concern for people, in this style, leaders look upon their followers as people - their
needs, interests, problems, development and so on. They are not simply units of production or means to an end.
Directive leadership, this style is characterized by leaders taking decisions for others - and expecting followers or
subordinates to follow instructions. Participative leadership, here leaders try to share decision-making with
others (Bell 2008).These behavioral categories are pervasive across almost all leadership situations, but neither
behavior alone is sufficient to ensure leadership success (Bell 2008).
2.3.3. Situational/Contingency Theories of Leadership
The most important breakthrough in leadership research was the recognition that effective leadership
involves matching leadership behaviors and strategies to particular situational contexts( Hay 2010).
Contingency or situational models differ from the earlier trait and behavioral models in asserting that no
single way of leading works in all situations. It recommends using organizational leadership skills, and
influencing culture by motivating, influencing communications, influencing the group and leading change
(Hersey et al. 2006).
Rather, appropriate behavior depends on the situation at a given time. Effective managers diagnose the
situation, identify the leadership style that will be most effective, and then determine whether they can
implement the required style. The central idea was that effective leadership was dependent on a mix of factors.
2.3.4. Transformational Leadership
2.3.4.1. Characteristics of transformational leadership
Burns (1978) who considered as the father of transformational theory of leadership, viewed
transformational leadership as a requirement to achieve and successfully manage change in constantly changing
world conditions. The model of transformational leadership refers to a process of creating a commitment for the
strategies, objectives and mission of an organization to make effective organizational performance (Dessler,
1999; Riggio and etal, 2006).
There is a large and growing body of evidence that supports the effectiveness of transformational
leadership over other types of leadership styles. According to Bass and Riggio (2006) transformational
leadership has rapidly become the approach of choice and application of leadership theory for its emphasis on
intrinsic motivation. Bennis & Goldsmith (1997) have stressed that transformational leadership provides a better
fit for leading today’s complex work groups and organizations. It is very important where followers seek an
inspirational leader to guide them through an uncertain environment. Also transformational leadership is highly
important where followers want to be challenged and feel to be empowered, if they are to be loyal and high
performers. Recent research has also found that individuals, who are seen as outstanding leaders, across many
contexts, are described as extremely knowledgeable and trustworthy, as well as sensitive to follower needs and
encouraging of follower growth and development (Northouse, 2010).
Bass (2006) stressed that the transformational leaders acted on “deeply held personal value systems”.
And they encouraged their followers to accept organizational activities by developing of their abilities to look
above their own self interests. It also stressed by other scholars that the transformational leader transforms the
needs, values, preferences and aspirations of followers from self-interests to collective interests (Northouse,
2004; Bennis & Goldsmith, 1997). According to all these, a major factor that separated transformational leaders
from most other leaders was the ability to create and communicate a compelling vision or purpose for the group.
Transformational leadership is a new paradigm of leadership theory that has conceptualized as effective style of
leadership and important in every setting (Avolio and Yammarino, 2002; Bass and Riggio, 2006). They have
demonstrated that transformational leaders are those who stimulate and inspire followers to achieve
extraordinary outcomes.
2.3.4.2. Components of transformational leadership
Bass and Avolio, (2000) and Bass and Riggio (2006) have identified four components of
transformational leadership: Idealized influence, Inspirational motivation, Intellectual stimulation, and Individual
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Vol.23, 2014
15
consideration. These characteristics are further analyzed in this study as variable for the measure of effective
leadership by using MLQ (multifactor leadership questionnaire).
Idealized influence; Transformational leaders behave in the way that they are respected and trusted. Model the
way to the desired objectives, set the example, exemplars, [and] makers of meanings, pathfinders, and
molders of organizational culture (kouzes &pozner 2002).
Inspirational motivation; transformational leaders behave in ways that Inspire a shared vision by providing
meaning and challenge to their followers performance , Envision the future by clearly communicating
expectations that followers want to meet and also demonstrating commitment to goals and the shared
vision. Such leaders have a deep sense of the purpose for the system and a long-range strategic sense
and these provide a sense of overall direction.
Intellectual stimulation; Challenge the process, Search for opportunities, experiment and take risks and also
enable others to act, foster collaboration, strengthen followers’ efforts to be innovative and creative by
questioning assumptions, reframing problems, and approaching old situations in new ways.
Individual consideration; transformational leaders pay special attention to organizational members’ needs for
goal achievement of the organization by Encouraging the heart of everyone involved, Recognizing
individual contribution, and Celebrating accomplishments.
Anderson, Gisborne, & Holliday (2006), further explained that transformational leaders: Provide ways
to gain a visionary (vivid-vision) view of an agreed, encouraging, and preferred future. Moreover, they offer a
skilled mind in planning, managing, and leading in unpredictable change environments. So the need for leaders
to fully understand the competencies necessary to become a successful transformational leader is becoming
increasingly important due to the rapid changes and innovations in today’s market.
The writers asserted that visionary (transformational) leaders are nearly always more effective than other
leaders,. In the last three decades, visionary (transformational, charismatic) leadership has received increasing
attention (Bass, 1985, 1998; Burns, 1978). It added a new dimension to organizational studies, namely the
visionary aspect of leadership and the emotional involvement of employees within an organization. The basic
notion is that a visionary leader can create an impression that he or she has high competence and a vision to
achieve success. Subordinates are expected to respond with enthusiasm and commitment to the leadership
objectives, and may be recruited because they share the vision. Bass (1985, 1998) developed a theory of
visionary or transformational leadership whereby the leader inspires and activates subordinates to perform
beyond normal expectations.
2.3.4.3. Challenges of public services reform programs and organizational transformations in
Ethiopia
The government has been undertaking lots of reform measures in order to create effective leadership
system that support the attainment of economic development and good governance. Among these reform
programs, CSRP, Comprehensive Capacity Building Program, BPR, and BSC initiatives all aim to radically
transform the civil service system into modern, effective and efficient system that allows government to attain
the vision and policy strategies.
Even though some achievement has been registered due to these programs, the evaluation undertaken in
2010 and at different times indicated that, the implementation of the projects remain less than expectations. This
has an implication of lack of transformational leaders within the organizations able to impact the performance of
the organizations..
Another weakness by which the reform program criticized is Poor communication. As it is indicated by
Mehret and Paulos (2000) and many others BPR framework requires communication with employees, customers
and stakeholders. Due to lack of formal communication, however, confusion and rumors among employees have
been common in many public organizations. So that, transformational model of leadership is considered as the
most effective in the contemporary situations of the organizations.
Research Design/Methodology
3.1. Research Design
The research design embodies more of descriptive quantitative survey and by applying some qualitative
approach to triangulate the quantitative data. The rationale for the choice of descriptive survey method is the fact
that the descriptive studies are used in order to describe and interpret the trend of events that exists (Seyoum and
Ayalew, 1989; and Best and Kahun, 2003). Interviews were conducted to enreach the topic under study that can
contribute to the research process by providing rich interpretations of events on transformational leadership and
organizational performance. So that, the research method applied was mixed research approach.
International Affairs and Global Strategy www.iiste.org
ISSN 2224-574X (Paper) ISSN 2224-8951 (Online)
Vol.23, 2014
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3.2. Sample
Ethiopia is a country that follows a federal system of government. Under this federal system of
government there are nine autonomous regional state and two city administration. It is impossible to assess the
cases of all these regions and city administration. Therefore, to make the research manageable some regions and
some organizations are selected from national to regional level following the hierarchy.
The choice of population for this study was driven by the need to extract informed and relevant
information from surveyed organization. This is essential in making informed assessments, conclusions and
recommendations at the end of the research.
The sample unit for this study consisted of pubilic service leaders, employees, andd customers of
public services (N=350). 30% of the selected public service organizations’ leaders were included by using both
probability and non-probability (random and purposeful) sampling method.
Sampling method applied by using multi-stage random sampling as follows;
A/ the first step was to stratify the sectors in to social sectors, economic sectors, and governance
sectors. Then social sectors represented by education; the economic sector represented by agriculture sector; and
governance sector represented by civil service sector. The inclusion of other sectors except civil service is based
on their performance in the implementation of reform program. But civil service organization was included in
the study because it is the leading institution of the reform initiatives in the country.
B/ among the nine regions and two city administrations of the country two regions and one city
administrations were selected purposefully. Oromia region, which is the largest region (45%) and might have
also the largest impact on the development of the country, purposefully selected as the part of the study, and
Addis Ababa city included in the study randomly from the two city administrations.
C/ From emerging regions it was tried to include one region and Bensihangul Gumuz included in the
study purposefully because this region was reported better performing region in reform implementations among
emerging regions according to the report of the government 2010/2011. This was with the view of drawing good
experiences to support other emerging regions in implementing reforms.
3.3. Methods of Data Collection
The researcher used different instruments for data collection: Questionnaire, Interview, 0bservation
focus group discussion, and document analysis (Records, reports and different documentary analysis) were
conducted from the selected regions and institutions. Furthermore, observational check-lists were prepared and
used for issues that require special attention.
3.4. Method and Tools of Data Analysis
Both quantitative and qualitative data collected by using different instruments were categorized
through coding, tabulation, and by drawing statistical inferences and were analyzed by using different tools.
Quantitative data were analyzed using ‘the Statistical Package for Social Sciences (SPSS), Microsoft Excel
package, and Web Chi Square calculator (Web tools). The chi-square test statistic and cross-tabulation were used
in the testing of the hypotheses and to identify relationships between leadership variables and organizational
performance.
Analysis of qualitative data obtained from documents, interviews and responses to both open and close-
ended questions as a whole and analysis of all data collected from primary and secondary sources was made to
support the quantitative data. Accordingly, some data analysis methods such as percentage, chi-square, t-test
were employed for the purpose of data analysis and interpretation.
1. Result and discussion: Data Presentation and Analysis
4.1. Introduction
This part of the article presents the results of the data gathered from leaders’ employees, and customers
of public service institutions by using questionnaire, interview, and focus group discussions. This article deals
with the second basic research question: what is the relationship between transformational leadership and
organizational performance in Ethiopian public service organizations. Based on the research design of the main
research the questionnaire was distributed to 150 leaders, found at different levels,100 organizational
employees, and 100 organizational customers and 350 (100%) were successfully responded and the data
gathered through interviews and focus group discussion were organized and interpreted in view of the objective
of the study and research questions.
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4.2. Characteristics of the respondents
4.2a. The following Pie charts Illustrates the demographic characteristics of the respondents
There were three categories of respondents; leaders, employees and customers from public service
organizations. As it indicated in the pie chart above from all categories the proportion of respondents were 229
(65%) male and 121(35%) females. This indicates usually in the public service organizations of Ethiopia the
number of leaders and employees are male biased. This shows that were male dominated respondents in the
study and male dominated number of leaders and employees in the public service organizations of Ethiopia.
The male and female proportion of customers has no such biasness, and both near to equal proportion (53% and
47%) since most of the customer respondents were not the members of the organizations.
Regarding their age majority of the respondents were adult or matured because 60% of them were aged
above 41 (47% of them aged between 41-50 years and 13 % aged between 51-60)). This shows that that there
were matured and well experienced leaders , employees, and customers who responded and present their ideas
for the study based on the questionnaires. The younger leaders employees, and customers who aged 18-40
years were included in the study by 40 %.
Many of the respondents do have first degree and above. First degree and above holders accounts
for83% (40% for first degree and 43% for second degree). This indicates that the educational preparation of the
respondent’s form all categories is good enough and the respondents were matured and have good background to
respond to question presented to them.
4.2b.
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4.2c. Respondents were lso catagorized by regional (74%) and federal (26 %) level respondents as
follows;
4.2d.
As it indicated in the table 1B below most of the respondents (both leaders and employees) had the
service years for so long years and have rich experiences. 61% of the respondents have served for more than 15
years (42% served for 16-20 years and 19 % above 21 years). Most leaders have worked for more than 5 years
on leadership position. Most of respondents from the employee categories also have experienced since they have
worked for more than 15 years in the organizations they are working in. This indicates that they can respond
properly regarding the phenomenon of their organizations. Very few respondents with a less experiences were
included in the studies who are new comers to the organizations.
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4.2e
On the other hand, the trend indicates that as there is high turnover, since 30 % of the respondents have
stayed under one year on the current passion and 28.0 % of them have stayed for 1-3 years in the leadership
position. Only 7.3 % of the leaders responded as they were working on leadership position for more than ten
years.
Table; 4.3. Characteristics of respondents per organizations and regions
Respondents category
Leaders Employees Customers
Organizational
level
Federal level N 41 25 24
% 27.3% 25% 24%
Regional
level
N 109 75 76
% 72.7% 75% 76%
Category of
Region
Federal level N 40 25 25
% 26,6% 25% 25%
Oromia N 49 35 35
% 32.6% 35% 35%
Addis Ababa N 30 20 20
% 20% 20% 20%
Benshangul-
gumuz
N 31 20 20
% 20.6% 20% 20%
Types of
Organization
Civil service N 39 26 28
% 26% 26% 28%
Finance and
Economic
Development
N 37 26 24
% 24.6% 26% 24%
education N 37 25 24
% 24.6% 24% 24%
Agriculture N 37 25 24
% 24.6% 24% 24%
The above table indicates the distribution of respondents across regional level, category of regions, and
the types of organizations they were drown. In order to get information from the horse’s mouth 72.7% of
leader’s respondents, 75% of employee respondents, and 76 % customer respondents were from regional level
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20
and the rest were from federal level. This helps to investigate the degree of integration of the organizations at
hierarchal level.
Across the regions also 32.6% of leader respondents were from Oromia region, since it is the largest
region and the rest 26.6%, 20%, and 20.6% were from federal, Addis Ababa, and Benshangul respectively.
Employees and customers with the proportion of 25% form federal institutions, 35% from Oromia, and both 20
% form Addis Ababa & Benshangul-gumuz were participated in the study. As depicted in the above table,
respondents were also from different organizations.26% of them from civil service organizations, 24% of the
respondents form each of the rest three organizations. This helps to investigate the variations performances
across regions and the gaps observed. Furthermore, by doing this the researcher gets what the phenomenon of
leadership and organizational performance look like across the regions different organizations.
4.3. RESULTS and FINDINGS
The study for this article is guided by the basic research question;
1. What is the relationship between transformational leadership and organizational performance?
Guided by the above basic question the study (article) specifically attempted to:
a. Analyze to what extent the leaders of public service organizations became transformational leaders
and improve the effectiveness of the performance of their organizations.
b. Assess the components of transformational leadership that leaders of public service organizations
are missing in Ethiopian case.
c. Assess the challenges that leaders are facing at all levels in transforming the mission and visions of
the organizations.
Instrumentation
The survey consisting of separate sections was given to three categories of respondents: leaders,
employees, and customers of public service organizations. Section one, which consists of ten questions about
demographic characteristics of the participants. Section two has different questions that solicited about the
relationship between transformational leadership and organizational performance specifically for this article. The
survey utilized a 5-point Likert- scale (latter changed to three) and other standard scale to gather the information
from the participants.
Data Analysis All data were analyzed in terms of how each survey questions addressed the research questions that
guided the study. The participants’ survey item response were entered into an excel file that was then converted
to statistical package for social science (SPSS) for statistical analysis. Analysis included descriptive statistics
represented by frequencies and percentages. Chi square was used where interest was in testing for difference
among each variable individually. The study also used correlation and ANOVA model to identify factors that
determine active participation of the local people the relationship and variances among the different groups
under study. The 0.05 probability level was used for statistical significance.
Research Question: What is the relationship between transformational leadership and organizational
performance?
Participants were asked to what extent organizational leaders have exercised transformational
leadership styles to implement government reform programs/ initiatives/projects to improve customer needs.
How organizations focused on the major strategies and became competitive to bring effectiveness in
performance were the issues considered. The opinion of the respondents indicated in the following table;
Table 4.3.1.
NO
respondents category
Leaders Employees Customers
1 Improvement of customer
needs
Low N 58 60 65
% 38.7% 60.0% 65 %
Medium N 73 30 30
% 48.7% 30% 30%
High N 19 10 5
% 12.6 % 10% 5%
2 Achievement of government
reform goals
Low N 74 62 69
% 49.4% 62% 69%
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NO
respondents category
Leaders Employees Customers
Medium N 63 30 20
% 42% 30% 20%
High N 13 8 11
% 8.6% 8% 11%
3 Organizations’
competiveness and strategy
focused
Low N 87 60 70
% 58% 60% 70%
Medium N 44 30 21
% 29.3% 30% 21%
High N 19 10 9
% 12.6% 10% 9%
4 Effectiveness in performance Very
low
N 80 57 59
% 53% 52% 59%
Medium N 47 37 31
% 31.3% 37% 31%
High N 23 11 10
% 15.3% 11% 10%
Transformational leadership presents opportunities for improving customers’ needs (Bass and Riggio,
2006).When this fact is investigated compared to the practical cases of the organizations under study the result
indicates as follows;
As indicated in the above table item one, 38.7% of the leaders, most of the employees and customers
60% and 65 % respectively responded that the degree of the improvement of customer needs is low, and only
30% of them rated at medium level. Only 12.6% of leaders rated customer need is improved at high level due to
transformational leadership. This implies that the leadership is not yet at the required level of satisfying what
internal and external customers are demanding.
Regarding the achievement of government reform goals; the importance of applying transformational
leadership style has high importance to shift radically and transformed the belief of and values of people in the
organization. However, most of the respondent’s customers by 69%, employees 62%, and leaders by 49.4%
responded the trend as very low. Respondents who rated it at medium level is less than 50%, and only 8-11 % of
respondents responded as it was high. This implies that as there are high variations. The interview conducted
with some of the organizational leaders also justified public service organizations lack competent leaders for
undertaking reform programs. And the overall implication is that transformational leadership is needed as a
critical factor in implementing change.
The item 3 of the above table systematically designed to assess how organizations became competitive
and strategy focused to lead organizational change. The Majority of the respondents (58% from the leaders,60%
from the employees, and 70% from the customers) believe that the competitiveness of public service
organizations to be strategy focused is low and to some extent became at medium level as responded by 29.3%
of leaders, 30 % of organizational employees, and 21% of the customers. The three groups don’t have
differences on their attitudes and argued the improvement is at minimal level.
Effectiveness in performance is also rated in a similar ways with the rest of variables by most of
respondents of the three groups. More than 50% of all groups responded that effectiveness in performance is
low. Only 15%, 11%, and 10% of the leaders, employees, and customers respectively responded effectiveness in
performance is achieved.
As the data in the table indicates, the respondents believe that the strategy alignment or the public
service organizations to be strategy focused was the most thing they lack and require transformational leaders to
compete this. This implies as it again highly affected the effectiveness of organizational performances.
As per interview made with employees and customers they believe that the reform programs like
BPR,BSC, and others like development of reform army, did not achieved their target as per planned. This
implies that even though some improvements have been achieved, the implementations of government reform
program still require strong transformations. The discussants of the interview were raising ideas similar with the
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Vol.23, 2014
22
respondents’ of the questionnaires in that the reform program were not well communicated and not
institutionalized. This was assumed as main reason for customers’ needs were not improved at required level.
In general the achievement reform program was discussed as the basic factor for the effectiveness of
organizational performance, for customer needs improvement, and for organizations to be strategy focused. And
this requires transformational leadership approach as it is stressed by some researchers as discussed in the review
of literature. Transformational style is needed to transform people and organization. Moreover, it is needed to do
more than expectations, changing the people’s mind and heart and enlarge the vision to be strategy focused, and
at the same time to improve customer needs.
To see the correlations of the variables which were rated above by respondents: there is a correlations
among the variables and it is significant among some of them. This indicates these are the related variables
affected by transformational leadership approach. However in some of them there is week correlation, but
positive as indicated below.
Table 4.3.2.
Correlations
Improvement
of customer
needs
Achievement
of
government
reform goals
Organizations’
competiveness
and strategy
focused
Effectiveness
in
performance
Spearman's
rho
Improvement
of customer
needs
Correlation
Coefficient
1.000 .621**
.455**
.459**
Sig. (2-
tailed)
.000 .000 .000
N 344 344 342 344
Achievement
of government
reform goals
Correlation
Coefficient
.621**
1.000 .747**
.650**
Sig. (2-
tailed)
.000 .000 .000
N 344 350 348 350
Organizations’
competiveness
and strategy
focused
Correlation
Coefficient
.455**
.747**
1.000 .697**
Sig. (2-
tailed)
.000 .000 .000
N 342 348 348 348
Effectiveness
in
performance
Correlation
Coefficient
.459**
.650**
.697**
1.000
Sig. (2-
tailed)
.000 .000 .000
N 344 350 348 350
**. Correlation is significant at the 0.01 level (2-tailed).
As indicated in the correlation table above, all variables improvement of customers need, achievement
of government reform needs, organizations ‘strategy focused, and the effectiveness of the organizations in
effectiveness are highly correlated, having a significant relationship possetively.so these are very related factors
to be affected by transformational leaders.
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Table 4.3.3.the extent of the qualities of transformational leadership as rated by respondents
Transformational
leadership components
respondents
category Total
leaders employees customers
Idealized influencing
charismatic, creative,
low N 58 79 68 205
% 38.67% 79.00% 93.00% 58.57%
medium N 73 10 20 103
% 48.67% 10.00% 20.00% 29.42%
high N 19 11 12 42
% 12.67% 11.00% 12.00% 12.00%
Individual
consideration/
supporting subordinate
roles
low N 74 78 80 232
% 49.33% 78.00% 80.00% 66.28%
medium Nt 63 12 12 87
% 42.00% 12.00% 12.00% 24.85%
high N 13 10 8 31
% 8.60% 10.00% 8.00% 8.85%
Intelectuall
stimulating/role model,
accountable and set
high standards
low N 89 77 80 246
% 65.33% 77.30% 80.50% 70.28%
medium N 42 16 13 71
% 28.00% 16.50% 13.30% 20.28%
high N 19 7 7 33
% 12.60% 7.20% 7.20% 9.42%
Inspirational
motivating/empowering
and delegating
low N 83 80 86 249
% 55.33% 80.00% 86.00% 71.14%
medium N 49 19 14 82
% 32.66% 19.00% 14.00% 23.42%
high N 17 0 0 17
% 11.33% 0.00% 0.00% 4.85%
The items in the table above were specifically designed to assess to what degree public service leaders
became transformational or not. To this end some qualities or components of transformational leadership were
considered. The result from the table indicates 58.57 % of respondents believe that the leaders are not
charismatic, creative or are not presenting radical solutions with the problems facing organizational members.
Among three categories of respondents only 12 % were rated as high .this implies leaders capacity is at a lower
level to in influence during the time change to pull out of crises. .
Regarding individualized consideration or in supporting subordinates role still major respondents have
rated as low by 66.28 %, while only 8.85 % have rated at high. This implies that organizational members are less
supported and employees and customers involvement/participation in the change process is not at a required
level. So a great element of transformational leadership components has been missed and actually this was
proved by the interview conducted. This again implies leaders of public service organizations in Ethiopia need to
see the vision so clearly and help followers to embrace the values so passionately.
Regarding Intellectual stimulating /playing role model/accountable and setting high standards for
performance the data from above table indicates 70.28 % of the respondents believed it is low .This implies that
the leaders ability to raise the followers creativity are much below expectation. This again indicates that the
necessary skills, behaviors, knowledge, competencies or abilities needed for leaders to be transformational need
to be designed more.
The item –in the Table –also illustrates the qualities of leaders in inspiring and motivating is rated low
by 71.14% of the respondents and only rated as high by 4 .85 % of the respondents. This also implies that leaders
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of the public service organizations are not properly sharing the visions and missions which are the building block
or the organizations.
Table 4.3.3. Correlation between transformational leadership qualities and indicators of organizational
performance
*. Correlation is significant at the 0.05 level (2-tailed).
Custome
r
satisfacti
on
Employe
e
satisfacti
on
Cost
of
servic
e
delive
ry
Performa
nce
managem
ent
One-
stop-
shop
servic
e
delive
ry
Hierarchi
cal level
reduction
Reducti
on
of
control
Charisma
tic
,creative,
empoweri
ng and
inspiratio
nal
Correlati
on
Coeffici
ent
.177**
.020 -.062 -.114* .010 .006 .068
Sig. (2-
tailed)
.001 .713 .260 .036 .853 .912 .284
N 342 335 335 339 341 341 251
Clarifies
and
supports
subordina
te roles
Correlati
on
Coeffici
ent
.112* .037 -.019 -.043 -.038 .085 .072
Sig. (2-
tailed)
.037 .497 .729 .425 .475 .115 .251
N 348 341 341 345 347 347 257
Make
decisions
as
necessary
Correlati
on
Coeffici
ent
.130* .021 .053 .024 .082 .107
* .078
Sig. (2-
tailed)
.015 .698 .327 .663 .131 .048 .216
N 346 339 339 343 345 345 255
Role
model,
accountab
le and set
high
standards
Correlati
on
Coeffici
ent
.090 .071 .062 .007 .122* .135
* .084
Sig. (2-
tailed)
.093 .194 .255 .890 .023 .012 .180
N 348 341 341 345 347 347 257
Establish
vision
and set
direction
Correlati
on
Coeffici
ent
.205**
.045 .084 .038 .143**
.071 .079
Sig. (2-
tailed)
.000 .417 .127 .488 .009 .195 .211
N 337 330 330 334 336 336 252
Empower
ing and
delegatin
g
Correlati
on
Coeffici
ent
.121* .002 .041 .042 .147
** .079 -.020
Sig. (2-
tailed)
.024 .977 .451 .442 .006 .143 .753
N 346 339 339 343 345 345 255
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There is no significant relationship between transformational leadership qualities and organizational
performance. As it can be seen at the correlation table above, there is positive correlation but highly weak. Even
some correlations are not statistically significant, because both are (the degree of leadership to be
transformational and the degree of organizational performance) are at a lower standard. so that the relationship
could not be strong. This implies a lot should be done than what have been done to improve the style of
leadership so as to improve the organizational performance.
Table 4.3.4. Correlation of Transformational leadership Qualities with some aspects of organizational
performance
Organizational performance Transformational leadership Qualities
N Pearson Correlation Sig.
Transformational leadership Qualities 350 1 0.000
Development of need and readiness for change 348 0.064 0.231
Effectiveness of shaping and communicating the strategy 349 .491** 0.000
Leadership development is effective 349 .113* 0.035
Performance improved due to reform initiatives 348 0.079 0.139
Workers are motivated in response of their efforts 349 0.068 0.208
Ways of rewarding success is established 348 0.044 0.413
** Correlation is significant at the 0.01 level (2-tailed).
* Correlation is significant at the 0.05 level (2-tailed).
As indicated in the above table the qualities of transformational leadership are correlated to other
aspects of organizational performance. Only it is observed significant with shaping and communicating the
strategy and developing leaders. with other variables it has positive correlation but weak. This indicates s the
degree of transformational leadership to bring change at the required level is too low. The performance of the
organizations is not yet improved and it needs to exert more effort. Workers motivation in response of their
effort is also indicated at low level. The same thing is true for the mechanisms of rewarding success in the
organizations.
Is there a difference in applying transformational leadership qualities across the regions and sectors?
Table 4.3.5. Across Regions
ANOVA
Sum of Squares df Mean Square F Sig.
having the qualities and
capacities of clear vision
and looking into the
future
Between Groups 1.136 3 .379 .596 .618
Within Groups 217.993 343 .636
Total 219.130 346
leaders ability to listen to
new ideas
Between Groups 6.321 3 2.107 3.963 .008
Within Groups 183.967 346 .532
Total 190.289 349
the ability of leaders to
think differently.
Between Groups 81.142 3 27.047 3.404 .018
Within Groups 2717.116 342 7.945
Total 2798.257 345
dealing with others
constantly and justly
Between Groups 23.983 3 7.994 .769 .512
Within Groups 3567.424 343 10.401
Total 3591.406 346
the ability of leaders to
clearly state what
employees and customers
expect
Between Groups 6.576 3 2.192 4.321 .005
Within Groups 172.978 341 .507
Total 179.554 344
the leaders ability to
communicate
Between Groups 28.955 3 9.652 1.547 .202
Within Groups 2127.277 341 6.238
Total 2156.232 344
the ability to make a
decision in a timely
Between Groups 4.050 3 1.350 2.614 .051
Within Groups 176.598 342 .516
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manner Total 180.647 345
the ability to listen to
customers and assign the
highest priority to
customer satisfaction
Between Groups 21.415 3 7.138 1.321 .267
Within Groups 1863.845 345 5.402
Total 1885.261 348
inspiring and
demonstrating a passion
for excellence
Between Groups 6.030 3 2.010 3.985 .008
Within Groups 172.516 342 .504
Total 178.546 345
As it can be seen form the above ANOVA table, the degree of the variations in applying
transformational leadership qualities across the regions and sectors is quit observable. There is a difference
among the performance of the regions regarding the following issues; leaders ability to listen to new ideas, the
ability of leaders to think differently, the ability of leaders to clearly state what employees and customers expect,
and inspiring and demonstrating a passion for excellence. In other variables, the trend is the same whether it is
positive or not. The variations among the performance of the regions are also indicated below.
2. The major findings
The study was designed to assess to what degree public service leaders became transformational and
bring effectiveness in organizational performance. The result showed that the leaders are not charismatic,
creative or are not presenting radical solutions with the problems facing organizational members. Even though
some improvements, the leadership style currently practicing in the public service organizations of Ethiopia is
not at level improving internal and external customer needs. The government reform programs are achieved less
than the expected level. Organizations were less focused on the major strategies and less competitive to bring
effectiveness in performance. Public service organizations lack competent leaders for undertaking reform
programs and the leaders’ ability to raise the followers’ creativity are much below expectation.
Employees and customers involvement/participation in the change process is not at a required level.
As whole, The key findings revealed that the changes in Ethiopia enabled public service organizations
to create demanding society for improved services. However, leaders are not at its required level to transform
their organizations and to meet these demands. Lack of components of the qualities of transformational
leadership is the major problems. There is high degree of variation among managers of different levels in the
areas of organizational performance.
3. Conclusions and Recommendations This study was conducted to assess the relationship between transformational leadership and
organizational performance in Ethiopian public service organizations. The major focuses were to analyze to what
extent the leaders of public service organizations became transformational leaders and improve the effectiveness
of the performance of their organizations. In addition it was to assess the components of transformational
leadership that leaders of public service organizations are missing in Ethiopian case.Based up on this the
following conclusion have been made.
The civil service reform program was designed to improve the effectiveness and efficiency of public
service performance. In addition to the comprehensive CSRP different reform initiatives like BPR, BSC,
different trial to develop citizen-charter, reform army were done to improve performance in the public service
institutions. All these require transformational leadership approach to be implemented.
Although different reform programs and the change in Ethiopia enabled public service organizations to
create demanding society for improved services, leaders are not at its required level to transform their
organizations and to meet these demands. And the overall implication is that transformational leadership is
needed as a critical factor in implementing change.
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following page: http://www.iiste.org/journals/ All the journals articles are available
online to the readers all over the world without financial, legal, or technical barriers
other than those inseparable from gaining access to the internet itself. Paper version
of the journals is also available upon request of readers and authors.
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Book publication information: http://www.iiste.org/book/
IISTE Knowledge Sharing Partners
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